The General Authority for Zakat and Tax (GAZT) has announced the reporting process of Value Added Tax (VAT) on Saudi Citizens who will benefit from the VAT exemption on private education in accordance with the Royal Decree No. (A/86) dated 18/4/1439 AH.
The VAT Implementing Regulations have imposed a 5% VAT on private education. However, in accordance with the Royal Decree aforementioned above, Saudi Citizens are exempt from VAT on private education.
Private Education Institutions will issue VAT invoices on the provision of private education with a 5% VAT on non-Saudi Citizens and without VAT to Saudi Citizens.
The supply of private education to non-Saudi Citizens will be reported in the VAT return on the section “Local Sales Subject to the Standard Rate”, while the supply of private education to Saudi Citizens will be reported in the VAT return on the section "Sales to citizens (private health services / private education / first residence)".
Read the relevant pronouncement of the GAZT on this subject here.